Can I ask for a salary adjustment to cover remote working expenses?
Johnny C. Taylor Jr., a human resources expert, is tackling your questions as part of a series for USA TODAY. Taylor is president and CEO of the Society for Human Resource Management, the world's largest HR professional society.
The questions are submitted by readers, and Taylor's answers below have been edited for length and clarity.
Question: I have been working remotely for my company for 17 months. They recently announced plans for extended and potentially permanent remote operations. I maintain a home remote office with some supplies I would normally get from work. It takes up space in my home that could otherwise be used for something else. Can I request a salary adjustment to account for my personal investments in my remote work? – Evan
Johnny C. Taylor Jr.: Certainly, you could ask for a salary adjustment. However, a better option to recoup remote work expenditures may be expense reimbursement. Expense reimbursement systems are a more common practice for businesses. Depending on where you work, several states may require employers to reimburse employees for necessary business-related expenses.
Even in states where it is not mandated by law, many employers have policies for reimbursement of certain business expenses. You’ll want to review your employer’s policy to identify what is applicable to your situation. You can also reach out to your HR department for further clarification.
If your employer does not offer reimbursement for business-related expenses, you may consider discussing your case with an accountant about possible tax deductions. As a last resort, I would then ask for a salary adjustment to cover the cost associated with an investment in your home office.
Now, employers aren’t required to oblige such a request, as such expenses may offset what you would save in eliminating your daily commute. You will want to understand what your costs savings are as well.
Q: I am currently searching for a job and already have insurance coverage through my spouse. Can I ask for higher pay based on the fact that I will deny coverage through a prospective employer? – Jorge
Taylorcertainly, when negotiating a salary, you are free to ask about a litany of considerations. The hiring process is exactly the setting when you should address compensation but be prepared to explain in detail why you are asking for a higher starting pay. Asking for higher pay when not enrolling in benefits is referred to as cash in lieu of benefits.
First, you should understand a few things as you approach the salary negotiation. When entering any negotiation remember you do not control the outcome only your perspective and how you express it. With that in mind, take care in crafting your position and be prepared with responses to both positive and negative outcomes.
I recommend you start with researching the industry and evaluating how your skill set and experience match up to the requirements for the position. Having a grasp of the common salary for the position and regional cost of living factors will better inform your salary expectations. Employers often have established salary ranges, so you’ll want to ensure what you are asking makes sense.
From your perspective, you may assume not taking insurance saves the company money. However, it isn’t always the case as there are variables not readily apparent. Benefits often come from a separate budget than salaries so it may not make sense from the employer’s viewpoint. In addition, if your prospective employer has at least 50 fulltime equivalent employees, it is subject to the Affordable Care Act and providing cash in lieu of benefits adds complexity to its compliance with the ACA.